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Category Archives: flipping houses

The market is ripe to dominate if you have the ability to find motivated sellers and wholesale houses. Many investors struggle understanding the process and paperwork flow when starting to wholesale houses. Enjoy this video of a case study that goes one step at a time through the process.

Are you ready to take your investing to the next level? Check out our Investor Success Mastermind and Coaching Program — Click here for more info

The process starts with finding the worst house in a nice area that can be purchased at a big discount. From there you develop a rehab plan, build a contracting team, renovate your house, market and sell it and

p.s. I received this email from Chris Mattingly and I want to share it with you…

Just wanted to let you know we signed a sales contract for $206,000 this afternoon. That gave us a $37,728 FLIP profit. We owe a great deal to you.
Jim, your fix and flip training provided me with the direction that we put into action, resulting in a tremendous success! I am very fortunate to have made your acquaintance to which I say THANK YOU.”

~ Chris Mattingly

Are you ready to learn to flip houses? Join me now to learn more about it. Click below

THE BENEFITS OF HIRING AN INTERIOR DESIGNER

There are so many wonderful benefits of hiring an interior designer. I will just talk about the top five benefits.Decorating is not as easy as it may seem. A person can’t just pick a paint color, some fabrics and move the furniture around and call it “decorated”. There is a science to decorating and if not done properly, often times, can look like a mixed up, mumbo-jumbo mess with either too much furniture or over sized furniture.

Benefit #1: A good Interior Designer can assist you in making the right choices in furniture, color and design so the outcome makes sense and looks beautiful.

How many times have you gone into someone’s home only to see the exact same sofa you’ve seen in another person’s house?Benefit #2An Interior Designer has access to many “Trade Only” resources that can give you a one-of-a-kind look for your home that matches your family’s lifestyle and personality.

When you need to have some renovation done to your home, do you just go to the internet or phone book and start calling contractors and hope for the best?

Benefit #3 An Interior Designer has a Rolodex of many resources for all kinds of reputable contractors that they’ve used and rely on. You can feel confident that you are going to get a contractor that will not only be reliable but do amazing work with the Interior Designer overseeing the project.

Benefit #4An Interior Designer can save you a LOT of money. Yes, you read that correctly. When not assisted by a professional designer, mistakes happen… often. Every the phone rings from someone who tried to “do it themselves” and failed and is now needing a designer to correct their mistakes. Whether it be an expensive rug purchased that was too small for the space or a sofa that doesn’t fit the area or style or the artwork is all wrong for the wall space…. The mishaps are many.

HGTV

Benefit #5 Designers have access to lower, “To the Trade Only” discounted prices that the public is not offered.

Again, the financial benefits and piece of mind when hiring an Interior Designer certainly out way any fee the designer may have.

Most investors fixing and flipping houses are relying heavily on hard money lenders. They are certainly a viable option for the short-term financing needed to fix and flip, but other options are available?

1.Hard Money Loans:

Hard money loans are available in most areas of the United States and they allow the Borrower to use the equity in the asset as collateral for the loan.The main advantage of using hard money is that it is easy for a borrower to qualify since the equity in the property is the most important element of the loan.Therefore if you can find a great deal, using hard money will get you into the game.

Hard money is considered to be “hard” because the points and interest are typically high and it can be painful to absorb the high cost of this type of financing.Some hard money lenders will provide 100% financing, but more are trending toward requiring the borrower to put skin into the game in the form of a down-payment or by not funding all of the repairs for the property.

Typically hard money lenders will charge 3 – 8 points.A point is equivalent to one percent of the mortgage amount.The total mortgage amount usually includes the price being paid, closing costs and the renovation fix-up expenses.

For example if you were buying the following property:

Purchase price

$50,000

Closing Costs

$5,000

Renovation Budget

$45,000

Total Mortgage Amount

$100,000

If the hard money lender charges 5 points, that would equate to $5,000 in this example.The other loan term to be aware of with hard money is the high interest rate.Many hard money lenders charge between 12 – 18% interest only.In this example, if the hard money loan requires 15% interest, the monthly payment will be $1,250 per month.If the borrower pays 5 points and keeps the property for five months, the total interest will be $11,250 on this $100,000 investment.The total interest is a lot to absorb which is why it is described as “hard money.”

2. Easy Money Loans

I prefer to use easy money loans on short-term real estate ventures.They still get the investor into the game, will provide 100% financing, provide a great return for the lender but provide a lot more profit for the real estate investor.

As a savvy real estate investor you have access to great deals and you can offer great returns for your private lender.

Instead of paying 15% interest and 5 points, I like to structure my short-term ventures on terms such as 8 – 10% interest and no points.That turns the overall profit margin upside down when compared to using hard money.If you use the same example as the hard money so the total loan amount is $100,000 and borrow at 10% interest the monthly payment will be $833.33 per month.For the same five month period, the total interest paid will be $4,166.65.

Which loan would you rather use?

Hard money loan interest: $11,250.00

Easy money loan interest: $4,166.65

Hard money loans can get investors into the market and provide nearly 100% funding on houses you want to flip, but borrower beware and fully understand all the terms and associated risks of the loan you are taking to avoid surprises in the future.Also be aware that most hard money lenders also have numerous fee’s added into the closing costs.

If you can use OPM in the form of a private lender, you can pay a rate of return that is roughly 3-4 times the earnings of a CD and leave a lot more profit on the table for yourself.

What is holding you back from fixing and flipping?

For many, it is financing.

Learn to rehab your financing before you rehab a house and you will be on your road to success!

You have seen it on TV with shows like “Flipping Vegas,” “Flip This House,” “Flip Men” and so on. The make it look like so much fun, such an adventure and so down right sexy to flip houses… nothing could be easier, right?

Leave me a comment below with your favorite flipping show!

They make it look so easy to buy a totally distressed house, work with the contractors to fix it up and sell it for a fast profit! The made for TV drama is always entertaining, right?

The truth is that I do not watch these shows, but I do personally live the “Flipping Houses” adventure!

You need to find the right house, for the right price, build a reliable contracting team, market to sell to a new buyer, hope they can get their financing, work through their home inspection and then collect your large pay-day. Your payday will not occur if you are way over budget on your renovation or you cannot sell the house for as much as you had hoped. My point is that the entire process much be managed carefully in order to reduce risk in this type of short-term speculator transaction. It takes a lot of experience and discipline to create a large payday in a short amount of time fixing and flipping houses.

As my friend David Phelps so often says, ”there are a lot of many moving parts when flipping houses.”

Everything needs to go just right to reap the ultimate reward. The good news is that the entire process can be set up with systems and deliberate processes with checks and balances to reduce risk along the way.

Do you want to learn the secret systems to fix and flip houses? If so, join me in Richmond for a weekend that will teach you the entire process for A to Z.

The golden rule of real estate is you make money when you buy the right house for the house price! It sounds so simple!

When fixing and flipping, this is a super important step. You have to narrow your investment criteria to produce the right house, in the right location and be sure you do not overpay for the house. There are just 3 crucial numbers you must know and be absolutely confident in when buying a house to flip.

ARV: After Repair Value Repair

Repair cost

Max offer

Once you have the ARV and Repair cost, you can calculate your maximum offer.

I highly recommend that you use Rehabvaluator for creating your repair budget and calculating your max. Offer. Just click the banner below and it will blow you away. You can get a free version with this link below, once you try it, I am very confident you will want to buy it for just $97

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Learn to buy the right house, in the right location for the right price and you will be on your way to succeeding when flipping houses!

What about you? Do you need cash right away and need to flip some houses to pay down debt, quit your job or finally get ahead? Take the time to learn to do it the right way, join me in Richmond at
my Flipping Houses Academy and I will personally teach you my Ninja Jedi Secrets!

Want to sell a house? One key to your success is to provide a house with an awesome kitchen. The truth is that in many cases, women buy houses. I recently did a twitter poll on the most important room in the house and overwhelmingly the most popular choice is the kitchen. Everyone wants nice space when preparing meals, entertaining and making family memories. Buyers do not want old, dumpy cabinets, gross appliances and boxed in space for kitchens. Yes, kitchens are expensive, but they are worth your investment.

Here are the 3 key components of your kitchen renovations.

1. Cabinets – If the cabinets are solid and have not experienced water leakage from the sink, you may be able to save a bundle and have them painted and then install all new hardware (hinges, pulls, etc). If the kitchen has an dysfunctional design, worn out cabinets or is missing a dishwasher then you are likely going to want to demo and start over.

The nice thing about starting over is that you can start with a clean slate and move plumbing and electrical to accommodate a super efficient layout. Have your kitchen cabinet supplier take measurements and professionally layout your kitchen space to properly place appliances and utilize right-sized cabinets to maximize storage. There are a lot of cabinet options available in a wide variety of sizes, depths, panty style, etc. If you have higher ceilings you will be able to take advantage of 36″ or 42″ wall cabinets and don’t forget the crown molding and toe kick to let your cabinets shine!

Once your design layout is established, you can pick raised panel or flat panel doors. Raised panels cost more, but are really nice. There are a wide variety of colors and finishes available. For a flip, be sure to stay in your budget and select colors and style that match the house you are working on. Also select some stylish hardware to make your kitchen look stylish and new.

2. Counter-tops: The options available for counter-tops are changing a bit.

Here are some counter top considerations:

Granite – Granite countertops continue to be the most popular and best selling countertops. Granite has incredible natural color, is super hard and a nice solid surface for your kitchen. You can design it with a variety of edges including bull nose, bevels, double ogee and ogee. Buyers love granite countertops. They are not completely maintenance free and the lighter colored tops can be stained, so buyers beware, but Granite sells best! To save some money on granite you may be able to go with a thinner slab or keep the edge profile standard.

Quartz – Quartz is a super durable, solid surface countertop. Quartz countertops are typically 95% quartz combined with 5% polymer and that formula provides a great option for consumers. Quartz comes in a wide-variety of colors and patterns and has been exploding in popularity the past few years.

Laminate – Formica type countertops have been around for many decades. Laminate tops continue to be the cost-effective leader. They can be fabricated in square edge or a pro-form style with a variety of edges. The colors and patterns are now mimicking granite countertops, which is blurring the edges between laminates and solid surface countertops. With laminate, you can get a very cost effective countertop that can look similar to solid surface quartz or granite. You can save a bundle with laminate if your budget does not allow a solid-surface granite or quartz.

3. Appliances – How can you make your kitchen look like a million bucks without spending a million bucks? Add in basic stainless steel appliances. They do not cost much more then white or black appliances. If you want to save some money on your appliances, watch for the sales in your local paper and also be sure to use a Lowes or Home Depot 10% coupon. You can get the coupons on Ebay or at your local post office in the change of address packets.

If you have an upgraded kitchen design with solid surface counter-tops, then use an upgraded appliance package with a side-by-side refrigerator or bottom freezer design. Be sure to always use a built in microwave and nice range.

Kitchens sell houses and that is the bottom line. Establish your budget and work the design features to maximize appeal

We know that book-knowledge alone, even if it’s the best,
isn’t enough for most beginners to really take off and
soar.

This pic above is from one of my coaching students houses!
Katie recently finished her first fix and flip and I am proud
of her! She made a nice pay day while learning a ton about
buying a house without a bank, managing contractors, getting
her house sold and working through inspection and settlement!Way 2 GO Katie! Katie is a young mother and now an Entrepreneur as well!

And the cost of today’s real estate coaching programs is
prohibitive for most people. Ranging from $5,000 to $10,000
to $25,000 and more, it’s a very high cost indeed.

That’s why affordable personal coaching is included as part
of our program. We’ll be there right with you to steer you
in the right direction, teach you everything you need to
know, and answer all your questions.

No more excuses about “getting started” because personal
hand-holding is included.

And I’m positive you’ll love our Fast-Action Bonus:

The “Private Lending Freedom” Boot camp – 13 downloadable
videos all about how to find all the private money you need
to buy as many houses as you want. Never need a bank again!

So if you’ve decided it’s time to get started, do yourself
a favor and take a look at the details: